What to do about getting a refund from an employer for deductions made for a health insurance policy?

My company takes pre-tax deductions for health and dental insurance. My wife started a new job and we decided to switch to the plan offered by her company using the “qualified life event” process. The changes to our healthcare coverage were retroactive to my wife’s hire date. I asked for a refund of the pre-tax deductions taken from my paycheck on/after her hire date. My company told me they could not refund past deductions, and it would be 1-3 more paychecks before payroll could stop the deductions; these future deductions will not be refunded. We are paying for healthcare coverage from my and my wife’s company even though my company has retroactively canceled our coverage. Aren’t we entitled to a refund? Can I cite some law to get action?

Asked on November 12, 2013 under Employment Labor Law, Arizona


Anne Brady / Law Office of Anne Brady

Answered 7 years ago | Contributor

You should apply for the refund directly from your insurance company, rather than going through your employer.  If you can establish that the policy was retroactively canceled, then the health insurance company should refund both your contributions and the contributions made by your employer, if any.  If your employer made contributions, your HR department should be on your side in wanting to recover the over payments.

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